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for Redwood City. This c_~sh assistance may be tailored to meet the needs of the <br /> individual applicants in this income categozy in the following ways: <br /> <br /> a. To write down the cost of the mortgage from the asking price to the <br /> amount the household can afford to pay (30% of income for mortgage, <br /> taxes, insurance, and homeowner association fees). <br /> <br /> b. For down payment assistance and or closing costs. <br /> <br /> c, To write Clown bank interest rates to make mortgages more affordable <br /> to lower income groups <br /> <br /> Cash assistance will be secured by a second Deed of Trust. Terms of Financing <br /> Assistance is discussed in Section I of this document. <br /> <br />2. Project Based Subsidies - Subsidies may be provided directly to the <br /> developer, who, passes their savings down to the home buyer in the rolm of <br /> below market rate units. Units generated from this type of subsidy will <br /> typically be available for 80% to 120% of median income for Redwood City. <br /> <br /> Project based subsidies may be provided to the developer as: <br /> a. Cash for construction £mancing assistance. <br /> b. Through issuance of mortgage revenue bonds. <br /> <br /> c. As a land subsidy where the developer pays the City or the <br /> Redevelopment Agency a nominal cost for public land. <br /> <br /> d. Developer costs may also be minimized when infrastructure type <br /> improvements are paid by the public body and not included in the <br /> developer's cost to build a project. <br /> <br /> e. Additional subsidies may be provided through density bonuses, and <br /> other incentives which allow a developer to build more units than would <br /> be allowed under current zoning, with the provision that a certain <br /> percentage of the units be set-a-side for targeted income groups. <br /> <br /> <br />